Likert brought a new dimension to organizational development theory. Likert’s four systems of management describe the relationship, involvement and roles between management and subordinates in industrial setting. The four systems are a result of the study undertaken with the high productive supervisors and their team of an American Insurance Company. Later on, he and Jane G. Likert revised the systems to apply to educational setting. Likert delineated the characteristics of high and low- performing organizations and identified the problems with traditional organizational structures. Likert emphasized a management style in which people are likely to implement the decisions if they had a role in their making. This theory supports the idea that the key to positive interaction consists of maintaining an individual’s self worth and importance. Working towards organizational objectives can help individuals realize their personal goals.